Asian economies brace for impact of hot money
"The enormous influx of hot money into the Asian capital market toward the end of October has prompted monetary authorities in Hong Kong, South Korea and Thailand to adopt preventive measures that restrict the inflow of speculative capital that can create asset bubbles, Shanghai's First Financial Daily reports."

UBS Wastes No Time On Revamp, Job Cuts
"Scores of traders at UBS AG were locked out of the Swiss bank's London offices Tuesday as the institution moved quickly to implement the first of thousands of job cuts in a strategic restructuring."

"The six-nation Gulf Cooperation Council's (GCC) combined fiscal surplus may turn into a deficit around 2017 as oil prices slip below $100 and government spending rises, said the International Monetary Fund (IMF)."

Europe Product Swaps-Sandy worsens already tight markets
"Most oil product swaps firmed on the week to Monday, as traders priced in the possible effects of Hurricane Sandy, which was due to hit the U.S. East Coast on Monday, potentially worsening an already tight supply situation in Europe."

Japan seeks exemption on U.S. sanctions on Iran: Nikkei
"Japan is seeking an exemption from proposed new U.S. sanctions against Iran that could effectively freeze Tehran's use of payments for oil, the Nikkei business daily reported on Tuesday, citing sources."Japan Industrial Output Falls, Outlook Lowered
"Japanese industrial production fell an unexpectedly large 4.1% in September from a month earlier, government data showed Tuesday, a sign that Japan's economy may be losing more steam than expected amid the global slowdown."

## China ##PBOC Injects Record Amount of Cash Into Money Market
"China's central bank pumped a record-high amount of cash into the financial system Tuesday in an bid to ease a liquidity crunch caused by commercial lenders' surging demand for funds to meet capital requirements."

## US ##U.S. nuclear plant declares "alert" after Sandy storm surge: NRC
"Exelon Corp declared an 'alert' at its New Jersey Oyster Creek nuclear power plant due to a record storm surge, the Nuclear Regulatory Commission said, warning that a further water rise could force the country's oldest working plant to use emergency water supplies to cool spent uranium fuel rods."

KEPCO considers rate hike after record loss
"Kansai Electric Power Co. said Monday it is considering a rate hike after it booked a record group net loss of 116.7 billion yen from April to September, against a profit of 20.4 billion yen a year earlier."

Poor farmers 'face worst crisis since foot-and-mouth'
"Struggling farmers are facing the worst poverty crisis since the devastating outbreak of foot-and-mouth disease in 2001, according to an agricultural charity which has seen a 50% rise in calls to its helpline."

U.S. Comptroller Warns on Banks' Loan-Loss Reserves
"The U.S. could stop banks from boosting their earnings by cutting back on reserves held against future loan losses, a top bank regulator said Monday, arguing that the economy remains too rocky for financial institutions to lower their cushions."

Sunday, October 28, 2012

News Links, October 29, 2012

Governments to debate 50 billion euro cut to EU budget
"European Union governments will debate a cut of at least 50 billion euros this week as the starting point for negotiations on the bloc's proposed 1 trillion-euro ($1.3 trillion) long-term budget, a source familiar with the issue said."

## Global unrest/mob rule/angry people/torches and pitchforks ##Seven Tibetans burn themselves in anti-Beijing protests: group
"A total of seven Tibetans have set fire to themselves in the past week in protest against what they claim is heavy-handed Chinese rule in the Himalayan region, a human rights group said in a statement issued late on Saturday."

"Pakistani politician Imran Khan, a former cricket star and critic of U.S. drone strikes, was briefly delayed and questioned by U.S. immigration officials in Toronto before being allowed to board a flight to New York."

"Once seen as a promising alternative to the use of corn and other crops to make fuel, cellulosic biofuel has become a political football as companies struggle to produce commercial quantities, despite a government mandate."

"The only source of 'capital' left - BOJ monetization. The only problem, of course, is that Japan already has well over 200% of national debt to GDP. And that's the smaller problem. The bigger problem: even the smallest increase in prevailing interest rates, and the entire Japanese house of cards topples."

Iranians Build Up Afghan Clout
"Iran is funding aid projects and expanding intelligence networks across Afghanistan, moving to fill the void to be left by the U.S. withdrawal from Afghanistan by the end of 2014, according to U.S. and Afghan officials."

The al Qaida label has always been convenient for everyone, no matter which side of the fence you are on. As I've always said: How do you know if someone is AQ? You ask them for their official AQ membership card! -- RF

German distributors face weeks of diesel shortages
"Diesel distributors in Germany say they are facing supply shortages that could last another two weeks because of problems with local refineries and low inventories, in the latest sign the region is heading towards a supply crunch this winter."

"There's no theoretical reason why the air-to-gasoline process can't work. The problem arises when the process encounters the second law of thermodynamics. That's the one that says for all the energy the goes into a system, whatever energy comes out will have to be less. In this case, the amount of energy that is needed to convert air to gasoline is likely far to exceed the amount of energy available in the produced fuel."

"It is an open secret among precious metals analysts and traders that the gold and silver markets are being heavily manipulated, mostly to the downside; i.e. their prices are being suppressed by various Western financial entities in what should be a scandal much bigger than the Libor rigging scheme."

Thursday, October 25, 2012

News Links, October 26, 2012

## Global Ponzi meltdown/House of Cards ##WPP Cuts Sales Growth Forecast as Clients Slash Spending
"WPP Plc (WPP), the largest advertising company, slashed its full-year sales growth target for the second time in two months as clients in North America and Europe cut spending. The stock dropped as much as 5.2 percent."

"Ford Motor Co. (F) will shut three European plants, its first factory closings in the region in a decade, and cut 5,700 jobs to stem losses that the carmaker predicts will total more than $3 billion over two years."

"We'll take issue here with two key things: First, the US media's purposeful misunderstanding of the Iran-al-Qaeda relationship (fostered most obviously by FOX News of recent Sesame-Street-is-Liberal-Brainwashing fame); second, the US (rather than Iranian) facilitation of jihadist infiltration of the Syrian rebels."

"Two-dollar gas is really not sustainable when you look at what it takes to go and drill shale gas wells and further develop our industry -- you're not looking at $2 gas forever. It's more likely to be $4 or above that's the message that the market is delivering."

Not a game-changer:Oil Sands Crude Prices Falling Off the Table
"The problem for producers is the cost of extracting and upgrading the tarry oil sands. Existing oil sands projects can make a profit even if WCS drops below $50 a barrel, but new steam-assisted projects need a price of $65 to $70 a barrel just to break even and mining projects need a price of more than $90 a barrel to break even. If the low prices continue, new projects will be delayed until demand forces the prices back up."

Cyber-Security Chief on Wave of Web Attacks
"The man often credited as being the father of Internet defense says it's still unclear where a recent wave of hacking attacks targeting the U.S. financial industry are coming from."

"Streets, highways and bridges in Los Angeles County are deteriorating because officials have failed to provide maintenance and replacements for local infrastructure, according to a report released Wednesday."

Canon profit falls 35.6%, well below forecast
"Canon Inc. Thursday reported a 35.6% fall in net profit for its fiscal third quarter, missing expectations by a wide margin as a result of the yen's strength, a falloff in demand in Europe and a slowdown in China and other emerging markets."

News Links, October 25, 2012

## Global Ponzi meltdown/House of Cards ##

Eurozone business slump accelerates: Markit
"Eurozone private sector business activity slumped deeper into the mire in October, falling at its fastest rate since June 2009 to 40-month lows, a closely watched survey showed Wednesday."

"China has already muscled in on Japanese trade, and it is now muscling in on the U.S. dollar."

Singapore Yuan IPO Is Canceled
"A Singaporean real-estate investment trust backed by Hong Kong billionaire Li Ka-shing withdrew its yuan-denominated initial public offering owing to a weak market. The deal would have been the city-state's first flotation sold in the Chinese currency."

Boomers clogging the career pipeline (Canada)
"Many impecunious boomers are working longer and these so-called 'hidden pensioners' may block career opportunities for younger generations, says a survey by actuarial consulting firm Towers Watson."

Airlines Lift Profits on Stronger Fares
"Despite jet fuel prices holding at a higher level in the third quarter, two airlines reported strong earnings and reiterated their plans to limit the number of seats they plan to put in the air."

Mali war plan to be ready within weeks: AU
"An African plan for military intervention in Mali to help government troops reclaim territory from Islamist militants will be ready within weeks, the head of the African Union (AU) said on Wednesday."

Naval suppliers eye South America markets
"International suppliers for the world's naval fleets have set sights on Central and South America and the Caribbean as the next growth area for naval procurement and refurbishment contracts."

"We would normally be excited that oil prices are sliding. The problem is that oil prices are sliding due to demand issues rather than supply issues. This is nothing more than a continued concern about the global economy."

Cool Planet Plans to Turn Cobs Into Gas at $1.50 a Gallon
"Cool Planet Energy Systems, a biofuels maker backed by Google Inc. (GOOG), General Electric Co. (GE) and BP Plc (BP/), plans to build 30 manufacturing plants within three years to make gasoline, according to Chief Executive Officer Howard Janzen."

I hope they are including the costs of gathering and transporting the biomass. -- RF

Sharp's plight hitting partners nationwide
"Struggling Sharp Corp.'s restructuring efforts are dealing blows to its thousands of business partners across Japan, with some forced to lay off workers after seeing orders drop."